Callahan said 2011 looks much brighter than 2010, with a debt restructuring plan in place, a revamped zoning ordinance about to debut and work at the hotel portion of Sands Casino Resort Bethlehem wrapping up this spring.

He also touted a budget that cuts spending 12 percent, but retains the city's ability to provide essential services. He said people need to understand that big government is not one of Bethlehem's ills -- and that cutting too much from government budgets will hurt residents' quality of life.

"I don't hear people complaining about government taking over their snow removal," Callahan quipped.

Callahan also cited the city's low crime rate -- lower than any other city in the state with a population over 30,000. He also made good use of video clips highlighting technological investments in the police department, namely video cameras, and how they have become useful crime-fighting tools.

He also said city hall's workforce is the smallest it has been in half a century after the elimination of 54 positions.

City Council President Robert Donchez said 2011 will likely be a difficult year, citing a need to focus on expenses and city finances. Donchez thinks 2011 will build toward a better 2012.

"I am hoping we'll see more development that will come on the books in 2012," Donchez said, noting the Sands hotel and work on retail and convention space at the casino property.

Callahan and Donchez said the redevelopment of the 53-acre Martin Tower site in West Bethlehem looms as the next big opportunity to expand the city's tax base outside of Lehigh Valley Industrial Park VII.

Callahan noted that the site generated $1.5 million in taxes in 1990 and now generates $117,000.

"We have (redevelopment) plans on every Steel property but Martin Tower," Callahan said.